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UN~FORtN Cove~.+N7s. Borrower and Lendrr awenant and agr~~e a~ foliuws: ~ '
1. Payment of Priacipd and lateresl. Borrowcr tihall prumptly p:?y when due thc principal ~f and interest un the
indebtedness evidenced by ihe Note, prepayment and I:~tc rhargr~ a. pr~~viiled in ~hc Note, and the pri~ripai of and intcrcst
or~ any Future Advances secured by this Mortg;?ge.
2. I~ods for T~es and lacurance. S~bject to applicable law ~,r to a w•ritren vvaiver by Ixnder, Borrower ~h:+ll pay
to i.ender on the day monthly installments af principal :~nd ~ntrreu .ire par~ahle under the Note, until ~he Nute is paid in (ul1,
a sum (herein "FunJs") equal to one-lwetfth of the yca~ly~ ~a~c~ and a~~es,tnentc Hhich ma~~ attain pri~~rity ovcr this
Mortgage, and ground rents on the P~operty, if any, plus onc-twclfth of ycarly prcmium installments for hatard insurance,
plus one-twelfth of yearly premium installmcnts tor mortgage imurancc. if any, all as reasonably c~timated initially anJ from
time to time by Lender on the basis of a.sessmcnts and hills and reatiunable estimates the~eof.
'Iht Funds shali be held in an institution tlx: deposi~~ or ;~~cuums o! whirh are imutcd or guarantecd b)~ a Fcderal or
state agency (including Lender if Lender is such an institution 1_ender ~hall apply the Funds to pa}• .aid taxes, assessments,
insurance premiums and ground rents. I.ender may not charge tor holding and applying the Fund~. ;~nal~•iing said account.
ot verifying and compiling said asse~sments and hilts, unless Lender pa}~t Borrower interesi on the Funds and applicable I:?w
permits Lender to make sueh a charge. B~~rrower and I.enJer may~ agree in writing at the time of exrcutic~n of this
Mortgage that interest on the Funds shatl t~e paid to Borrower, and unless such agrcement is madc ar applicable law
requires such interest to be paid, Lender shall not he reyuired to pay Borrower am• intcrest or carning~ an the Funds. Lcndcr
shall give to Borrower, without charge, an ann~wl account~ng of ~he 1=unJ, showing creJils and defiits to the Funds ~nd the
pterpose for which cach debit Ia the Funds was madc. The Fund~ :~rc pledgeci ati addition:~) securit~• for thc sums sccured
by this Mortgage.
If the amount of the Funds held by Lendcr, together with thc fulurc monthly installmcnts of F~md~ payablc prior to
the due dates of taxes, assessments, insurance premiums and ground rrnts, shall e~ceed the amount reyuired to pa~~ said ta~es,
assessments, insurance premiums and ground rents as they fall due, such e~cess shal) be, at Borrower's opti~~n, either
promptly repaid to Borrower or crcdited to Borrower on monthiy installmcnts of Funds. If thc amoont of thr F-unds
held by Lender shall not be suf6cient to pay ta.Yes, ~ssessmcnts, insur~nce premn~ms and ground rents as ~he}• fall due,
Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 da}~s irom the date natice is mailed
by Lende~ to Borrower requesting paymcnt thereot.
Upon payment in full of all sums sccured by this Mortg:~gc. I.cndcr shalt promptty refund ta 8orruwcr an~• FunJs
held by Lender. If under paragraph 1R hereof the Propcrty i, svld or thc Pro~rerl) is ntherwisc acquired b~~ Lcndcr, t.endcr
shall apply, no later than immediatel~~ prior to the sale of the Pm{serty o~ its acquisition h~~ l.ender, an~• Fundc held h}•
Lender at the time of application as a credit against the sums secured h~~ this Atartgage.
3. Applieation of Paymenfs. Unless applicable IaW~ prarides otherw~ise, all payments recei~ed bp 1_ender under the
Notc and paragraphs 1 and 2 hereof shall bc applied bp I.endcr first in pa~n~ent of amounts payable to I.cndcr by Borrower
under paragraph ~ hereof, ihen to intere~t payable on the Nolc, thcn t~~ the principal of thc Notc, and thcn to intcrest anJ
principal on any Future Advances.
4.. Charges; Lktu. Borrower tihall pay all ta~es, atises~ments and othcr charges. fines and im~~sitions attributable to
the Property which may attain a priority over this hiortgage, and leaschold Pay~ments or ground rents, if anp. in the manner ~
pravided under paragraph 2 hereof or. if not paid in such manner, by BorraM•er making payment, when due, directly to the
payce thereof. Borrower shall promptly furnish to Lender all notices of amounts duc under this paragraph, and in the event
Borrower shal) make payment directly. Borrower shall promptly furnish to [.ender receipts evidencing such payments.
Sonower shall promptly discharge any lien ~hich has prior+ty o.•er this Mortgage: provided. that Borrower shall not be
required io discharge any such lien so long as Borroaer shall agree in writing to the payment af the obligation secured by
such lien in a manner acceptable to Lender, or shall in gcxxi faith contc.t such lien by, or defend enforcement of such tien in,
legal pruceedings which operate to prevent the enforcement of the lien or forfeifure of the Property or any part thereof.
5. Hazard Insurance. Botrowcr shaU kcep the impmvements now existing on c~reaftcr crcrred on the Property insured
against loss by fire, hazards included within the term "extended caverage", and such other hazards as Lender may reyuire
and in such amounts and for such periods as Lender may reyuirr, provided, that Lrnder shaH not reyuire that the amount o(
such coverage exceed that amount of coverage required to pa~ the sums secun:d hy ~his Mortgage.
T6e insurance carrier providing the insurance shatl be chosen by Borrouer subject to approval by l.ender; provided,
that such a~prova! shal! not be unreazonably withheld. All premiums on insurance policies shall be paid ~n the manne~
provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the
insurance carrier.
Alt insurance ~wlicies anJ renew als thereof shaN be in furn~ acceptable to LenJer and shall include a stanJard mongage
clause in favor of and in form acceptable to Lender_ I.ender shall have the right to hold the policies and renewals thereof.
and Bormwer shall prompdy furnish to Lender all renew•al notices and all receipts of paid premium.. In the event of loss.
Borrower shall give prompt nouce to the insurance carrier and Lender. Lender may make prcx~f of loss if not made prompt{y
by Borrower.
Unless Lender and Borrower othcrwisc agrec in writing, insurance pr~xecds shall bc applied to restoration or repair of
the Property damageci. pro~iJed such re~toration or repair is economicall~~ feasible and the security of this Mortgage ic
not therebp impaired. If such restoration or repair is not cconomirall}~ feasible or if the securily of this Mortgage wo~dd
be impaired, the +nsurance prexeeds shall be applieJ to the sums secure~i by this Mortgage. w~ith the excess, if an}~, paid
to Borrowcr. If the Propert~• is ahan~oned M~ Borrower, or if Borrower fails to res~nd to Lender within 30 days from the
date notice is mailed b~~ Lender to Borruwer that the insurance carrirr afFers to setUe a claim for insurance henefits, 1_ender
is authorized to collect and apply the insurance proceeds at 1_ender's optiun either to restoration or repair of the Propen}~
or to the sums aecured by this hfortgagc.
Unless Lender and Borrower othen+iu agree in writing, an~~ such application of proceeds to pnncipal shall not extend
or pvstpone thc duc date of thc monlhl}• installmcnts rcferrcd t~• in paragraph, 1 and 2 hereof or change the amount of
such installments. If under paragraph 18 hereof the Propert~• is acyuired b~~ Lender, aU right, title and interest of Borrower
in and to any insurance policies and in and lo the prcxeeds thcrcof resulting from damage to the Property prior to thc sale
or acquisition shaU pass to Lender to the extent of the sums secured b}~ this ;1lortgage immediately prior to such sale or
acquisition.
6. Presen•ation and ~taiotenance of Property: I.caseh~~tds; ('ondominiums; Planned Unit De~•elopments. gorro~~•cr
shall iceep the Property in good repair and shal) not cumtpit waste or permit impairment or deterioratiun of the Praperty~
and shall comply with the provisions of any lease if thi~ Mortgage i~ ~.n a Ieasehold. If this Mortgage is on a unit in a
condominium or a planncd unil dcvelopment, BorroK•er .hail Fxrtorm all of Borrower's obligations under the declaration
or covenants creatfng or governing the cond~~minium or planned unit development, the by-laws and regtdatiuns of the
condominium or planned uni! de~•elopment. and constituent du~:umenh. If a cunJominium or planned umt development
rider is executed by Borrower and recorded together with this Mortgage, thc covenants and agreements o( such rider
shall be incorporated ~nto and shall amend anJ supplcment ihe co~enants anJ agreements of this Moregage as if ihe riJer
~ere a part hereof.
7. Protection of I.ender's Security. If Borrower failc t~~ pcrform the covenants an~1 agrcements contained in this
Mortgage, or if any acUon ur proceeding ic commenced which materiall~~ afTects I.ender's interest in the Propert}~.
including, but not limited to, eminent domain. insolvency~, code enf~~rcement, e~r arrangements or pmceedings invol~•ing a
bankrupt ur decedent, then Lender at Lender's option, upon notice to 8orrower, may make such appearances, dishurse such
sums and take such action as is necessary to protect Ixnder's in~crest, including, but not limited to. disbursement of
reasonable attomey's tees and entry upon the Propcrty to makc rcpairti. ll t.cnder rcquircd martgage insurancc as a
condition of making the loan secured b}• this M~~rtgage. Borrr~wrr shall pay thc premiums required to maintain such
insuranee in effect until such t~me as the reyuirement for ~uch msurance termioates in aecordance w~ith Borruwer's and
~ ~ Sa~K2~ ~A~E 40?